After years of seeking loan forgiveness, the move clears the way for other projects in the parish that were left on hold until the matter was resolved.

“We had this weight on our shoulders that we knew this (debt) was coming due, and we would have to find the money to pay it,” said St. Tammany Parish President Pat Brister.

Parish officials said Hurricane Katrina left tens of thousands of homes flooded or destroyed, as well as power and other infrastructure in shambles. The parish needed the loans to function, and paying back the loans would have crippled parish operations.

“We would have to cut services. We would have to find the money somewhere. I'm certain no one wanted to pay more taxes, so that meant we would have had to start paring back,” Brister said.

U.S. Sen. Mary Landrieu, D-La., was successful in inserting language into the 2013 Homeland Security Appropriation Bill, which clears the way for other parish initiatives.

“Economic development, that's a big, big issue with us. We want more jobs, so how can we use some of this money to enhance what we are already doing in our economic development area?” Brister said.

Directly or indirectly, the loan forgiveness also frees up money for more road improvement, drainage projects and levee work.

“We knew we were right. Now, you know, it is not always convincing the federal government just because you are right, it's going to happen,” Brister said.

Days earlier, the parish received word of another $9 million in Community Development Block Grant monies as a result of Hurricane Isaac.

Brister said the Katrina loan forgiveness is a great victory for residents in St. Tammany.

Landrieu also announced Thursday nearly $10 million in federal disaster loans for the St. Tammany Sheriff’s Office had also been canceled, as well as nearly $65 million for Jefferson Parish.